From Paris to Practice: Why the Paris Agreement Matters for Ghanaian Businesses

For many Ghanaian businesses and entrepreneurs, climate change still feels like a distant issue, something for scientists or governments to worry about. But the truth is, it’s already shaping the world we live and work in. From unpredictable weather patterns affecting agriculture to global shifts in trade and finance, climate change is no longer just an environmental concern but a business issue. So, what exactly is climate change? What do international agreements like the Paris Agreement mean for your business? How might your operations be contributing to the problem? And most importantly, what actions can you take to become part of the solution?In December 2015, 196 countries gathered in Paris for a historic international accord, the Paris Agreement. The legally binding international treaty was adopted by parties during the Conference of Parties (COP21), open for signature, and entered into force in 2016.

The overarching goal of the Paris Agreement is to hold “the increase in the global average temperature to well below 2°C above pre-industrial levels” and pursue efforts “to limit the temperature increase to 1.5°C above pre-industrial levels.” (UNFCCC, 2015). 

Climate change, therefore, remains an existential threat with increasing temperatures as a result of Greenhouse gas (GHG) emissions,  and is one of the triple planetary crises. The rise in anthropogenic carbon dioxide (CO2) emissions, resulting in hotter temperatures, leads to adverse effects such as increased drought, sea level rise, rainfall variability, and biodiversity loss, posing threats to businesses and enterprises at all levels.

It, however, isn’t all doom and gloom from there, because there’s an avenue for tailored solutions.

Ghana’s Commitment under the Paris Agreement
Almost ten years later, climate change is hitting Ghanaian businesses. Climate-induced floods in markets like Makola, droughts affecting cocoa farmers in the Ashanti Region, and water shortages are disrupting daily work (World Bank, 2022). The Paris Agreement, signed far away in France, is now shaping how traders, commercial farmers, and shop owners in Ghana do business.

The Paris Agreement is hinged on the principles of pursuing collective action through independent efforts. Thus, countries are mandated to develop national plans towards addressing climate change effects, known as Nationally Determined Contributions (NDCs) (UNFCCC, 2015). Ghana has so far presented two NDCs to the UNFCCC. The first submission, which was the Intended NDC (INDC), was submitted in 2016, followed by the NDC 2.0  shared in 2021, with the Updated NDC (3.0) process ongoing, but yet to be submitted by the country.

Mitigation and Adaptation Priorities
Per the commitments from the NDC 2.0, Ghana’s actions are hinged on emission reduction (mitigation) and resilience building (adaptation). The aim is to reduce emissions by 64 MtCO₂e, and enhance the resilience of key sectors such as energy, agriculture, forestry and land use (AFOLU), transport, waste management, water, and health, by 2030, towards a low-carbon and resilient future. The NDCs further highlight both the unconditional commitments, which Ghana can deliver using domestic resources, and conditional commitments that depend on international financial and technical support. Both priorities are under unconditional and conditional components, reflecting Ghana’s intended holistic approach towards climate resilience and sustainable development.

Unconditional and Conditional Commitments
Ghana’s NDC sets out a pathway to reduce greenhouse gas (GHG) emissions by up to 45 percent by 2030. This includes a 20 percent unconditional target based on domestic resources, and an additional 25 percent conditional target, dependent on external support.
The total cost of implementing Ghana’s NDC is estimated at $9.3 billion, with $3.9 billion earmarked for unconditional actions and $5.4 billion required from international sources to achieve the conditional goals.

This includes using more solar and wind power, planting trees to save forests, growing climate-smart crops, and creating green jobs.

Many think climate plans are just for the government. But that’s changing. Formal and informal Small and medium-sized businesses, from chop bars to trotro operators, are now seen as key to making Ghana’s climate goals a reality (IFC, 2023).

What the Paris Agreement Means for Ghanaian Businesses
Climate change isn’t just a scientific concept; it’s changing how businesses run, secure capital and investment, and manufacture and distribute goods. These present bottlenecks for the private sector investors and businesses. Investors look into derisking, and climate change is the risk.
But there’s good news too. The rise of the green economy means more demand for energy-efficient solutions like green energy, climate-smart agriculture, sustainable packaging solutions, improved waste management and water solutions, education, and technological transfer tools and materials. Global investors are open to supporting businesses that mainstream sustainability and are about the environment (IFC, 2023). By going green, businesses can access and provide de-risked loans and grants for eco-friendly projects, build a climate-smart portfolio, and diversify the client and consumer base, whilst pursuing sustainability and climate-smart solutions for customers abroad who want sustainable products.

Decentering the solutions from policy to practice in Ghana for Businesses.
To remain competitive and resilient, especially in the changing climate landscape, businesses are encouraged to act on two major fronts: (1) embedding sustainability practices within internal operations, and (2) rethinking business design and models to support and advance through climate-smart diversifications. Strategic steps like these can go a long way. In curating these solutions, key attention is paid to the Ghanaian business landscape, the gaps in localisation of legal instruments in relation to international treaties, and localised solutions and nature of businesses.

Embedding Climate Action into Internal Operations
Sustainability must begin at the operational level. Businesses can start by conducting climate risk and energy assessments to understand how environmental changes could affect their energy and supply chains, infrastructure, or productivity. These audits are important in mapping out potential inefficiencies, vulnerabilities, and areas for cost-saving through improved energy use and resource management.
Consider transitioning to renewable energy sources such as solar power, whilst adopting energy-efficient pathways like switching to energy-efficient lighting, double flush waterclosets, turning off appliances when not in use, using water bottles and dispensers, and adopting digital solutions to reduce paper to collectively lower a company’s carbon footprint and operating costs. Internally, building a culture of sustainability is equally vital outside of business pathways, and this requires internal team capacity building on key sustainability and climate-smart principles.

Positioning Sustainability as Core Business Strategy
Beyond these internal changes, businesses also need to leverage the opportunities that climate action presents. In Ghana, agriculture, building, waste, energy, and education are a few of the major sectors that have endless potential for mainstreaming climate-smart business solutions. Businesses can explore green financing mechanisms such as sustainability-linked loans for green businesses, especially in sectors that contribute directly to emission reductions. Developing climate-resilient supply chains by working closely with producers, particularly those vulnerable to climate impacts, also ensures continuity and ethical sourcing in the agricultural sector, for instance.
Partnering with innovation hubs, climate-focused accelerators, and business incubators also presents an opportunity to provide additional support for diversifying a business portfolio. These platforms provide technical assistance, market access, and capacity-building opportunities that can help scale environmentally conscious businesses. For instance, the Telesto Climate Tech Accelerator in Ghana offers a 12-week program for early-stage climate tech startups, providing business coaching, mentorship, and exposure to investors. Launched in partnership with the U.S. State Department’s Office of Global Partnerships and Academic City University College, the program supports local entrepreneurs in building scalable solutions to climate challenges (Telesto Strategy, 2023)

A Case for ICACE Project
Recognising the critical role that the private sector, especially small and medium-sized enterprises (SMEs), must play in delivering Ghana’s climate commitments, the Integrating Climate Action and ESG Principles into Commercial Business Activities (ICACE) project was developed to fill a long-standing gap. Many SMEs, both formal and informal, face limited awareness, technical capacity, and access to resources when it comes to climate-related risks and opportunities. ICACE seeks to change that. Led by the Climate and Development Knowledge Network (CDKN) in collaboration with the Ghana National Chamber of Commerce and Industry (GNCCI), this project aims to empower businesses with the knowledge and tools to integrate climate action and Environmental, Social, and Governance (ESG) principles into their everyday operations. Through targeted capacity building, tailored policy guidance, and strategic advocacy, ICACE is bridging the disconnect between global climate policy, like the Paris Agreement, and local business practice. It’s about making climate-smart business not just possible, but profitable for Ghana’s economy.

A New Era of Business Thinking
The journey from Paris to practice starts with knowing what’s at stake and taking action. As Ghana pushes toward its 2030 climate goals, businesses will be the engine driving both a cleaner environment and a stronger economy. Embedding these climate-conscious practices into both operations and strategy provides Ghanaian businesses with the tools and knowledge to contribute meaningfully to national commitments while ensuring sustainability. In this critical decade of climate action, the private sector must move from awareness to action. Businesses don’t have to do this alone. Ghana’s climate plan encourages teamwork between the government, businesses, communities, and international partners. Ghana’s Third Biennial Update Report (BUR‑3)

BY: Climate and Development Knowledge Network Ghana